Why The Stock Market Goes Up On Tuesdays

The Dow Jones Industrial Average closed in the green on Tuesday, marking the fourteenth consecutive time the index rises on the second trading day of the week. Its a good stat to know.

djia chart

So far this year, Tuesday has been the best day of the week, with an average increase of 0.46 percent. And the second best? Friday, with a gain of 0.33 percent. 

chart shorts days with price movement

On the other hand, Monday has been the only negative day, with the Dow falling in 9 of the last 13 instances. Tuesday also marks the year's 72nd trading session that the Dow avoids a three-day losing streak.

The last time the Dow went this far into the start of a year without a three-day losing streak was 1930. But that streak didn't help much since the index finished the year with a loss of almost 34 percent.


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Turnaround Tuesday

As we wrote a few days ago => THIS POST HERE  the market was in holiday reversal mode and the BUS WAS GETTING FULL on the long side.

Some selling was expected and that is EXACTLY what we got today! This is called a TURNAROUND TUESDAY and we are witnessing the smart money slowly coming back into the market just as we expected to sell positions.

On the nasdaq hourly chart below you can see now how things were very overbought (from last weeks holiday reversal) and due to some of the selling action today, we have a clear sell signal. So sentiment trader would not be surprised to see some more selling at least in the very short term. 

What we are witnessing is very normal after a major holiday. The smart money is not 100% back at their desks trading, but rest assured will be back by the end of the week.


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